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The G7 countries will allocate up to €30B to Ukraine. At a meeting of the G7 finance ministers, they expressed a willingness to initiate budget support for Ukraine worth almost €30B, reported Spiegel.de. According to the participants in the talks, Ukraine itself voiced this financial need by the end of the year. About €5B a month has been spent, for example, on payments to officials or pensioners, which Ukraine cannot pay on its own. The International Monetary Fund considers these calculations fair and comes to similar figures. Assistance will be provided in the form of loans and grants. Therefore, Kyiv will not have to return the entire amount.
Ukraine has launched a global fundraising platform, United24. President Volodymyr Zelenskyy announced the launch of the worldwide initiative United24, the first component of which is an online fundraising platform. It is expected that this platform will become the main channel for collecting donations in support of Ukraine. United24, through the site u24.gov.ua, provides the opportunity to donate in one click from any country. The funds are distributed in three areas of assistance: defense and demining, humanitarian aid and medical care, and reconstruction of Ukraine. "Donate to protect. Donate to save. Donate to rebuild," Zelenskyy announced.
The US has passed $40B in financial aid for Ukraine. The President of Ukraine, Volodymyr Zelenskyy, thanked the House of Representatives of the United States of America, particularly Speaker Nancy Pelosi, for the prompt approval of the law on additional financial support for the Ukrainian state. The Lower House of Congress has reportedly passed Bill H.R. 7691, which provides for an additional allocation of about $40B to respond to Russia's aggression against Ukraine. Last month, US president Joe Biden sent a proposal to Congress to approve a new package to allocate $33B to support Ukraine. While working on the document, the lawmakers proposed an additional seven billion for food aid and military equipment for Ukraine.
Ukraine signs $100 million loan agreement with Japan. On May 16, Finance Minister Serhiy Marchenko and the President of the Japan International Cooperation Agency Akihiko Tanaka signed a loan to cover social payments, including for internally displaced people amid ongoing war with Russia. The repayment period of the loan is 30 years with an interest rate of 1% per annum, including a grace period of 10 years.
6.2 Debt
Ukraine will be able to service its foreign debt. Minister of Finance Serhiy Marchenko believes that Ukraine will be able to service its foreign debt in the near future, he said to Interfax-Ukraine. According to him, the state must pay $200M in May, and a similar payment must be made in June-August. "In September, Ukraine has to fulfill its obligations and pay $900M for Eurobonds. We are working on it now, but I would like to say that we will continue to service our debt obligations,“ said the finance minister. As reported, in 2021, Ukraine's public and state-guaranteed debt to projected GDP fell to 51.1%, and public debt decreased to 45.2%.
Ukraine came into this crisis with a decent macro and public finance profile - a fiscal deficit of 3-4% of GDP and public sector debt to GDP ratio of sub-50%. It ran a close to balanced current account position and held close to
40 UKRAINE Country Report XXXX 2018 www.intellinews.com